Gap between Gen AI's promise & reality in UK firms

A new report by Capgemini Research Institute reveals how Generative AI (Gen AI) is impacting management decisions and approaches, highlighting a significant gap between its potential and actual usage.

The study surveyed 1,500 global executives and 1,000 employees, with findings indicating that only a small percentage of UK employees believe their managers have essential Gen AI skills. Specifically, only 11.6% of employees think their managers possess the necessary data management skills, 12.8% acknowledge their technological literacy, and 20.9% believe they have the requisite agility.

The findings also show a contrast between the perceived potential and current utilisation of Gen AI in decision-making processes. While only 34.9% of managers are currently using Gen AI tools for decision support, 79.5% of the respondents see its potential for this purpose.

Unauthorised use of publicly available Gen AI tools is common among both groups, with 11.1% of employees and 20% of management admitting such practices. However, Gen AI utilisation is higher among management, where no managers reported non-usage compared to 44% of employees who do not use Gen AI at all.

Regarding the future use of Gen AI, 34% of employees believe that it could assist tasks across different functions within the next year. Conversely, a significant 68.6% of employees feel that replacing human managers with Gen AI would negatively impact employee morale and connection to the workplace.

Despite concerns, many employees acknowledge Gen AI's potential benefits, believing it enhances creativity (57.5%), reduces work-related stress (78.7%), and complements human skills by filling knowledge gaps (66%). More than half of management view Gen AI as a strategic partner to help evaluate opportunities and improve decision-making.

Roshan Gya, CEO of Capgemini Invent, commented, "Generative AI tools are becoming more adept at assisting with complex managerial tasks, which could challenge the status quo of organizational structure and ways of working. Generative AI has the potential to shift from a co-pilot to a co-thinker, capable of strategic collaboration, adding new perspectives and challenging assumptions. This shift could unlock significant value when tailored to specific business use cases but is dependent on several factors, including organizations prioritizing building the skills and readiness of employees, taking proactive steps around talent acquisition and development."

The report suggests that Gen AI could support and enhance entry-level tasks in various industries. Over the next three years, 78% of leaders and managers predict an augmentation of problem-solving and decision-making, with an evolution towards specialization in managerial roles.

There is potential for Gen AI to redefine management's strategic scope; however, current usage does not reflect this potential. Although 97% of leaders and managers have experimented with Gen AI, a mere 15% regularly use the tools in their daily work.

Transformations in organisational structures are necessary to facilitate efficient Gen AI integration. Currently, nearly half of the teams use AI to enhance existing workflows, and only a small percentage use AI for autonomous task completion. Although AI as a supervisor is rare today, more teams expect to adopt such practices in the near future, which highlights the importance of human judgment.

The study underscores the need for training and managerial guidance to secure Gen AI's future in the workplace, suggesting that team members should develop relevant AI skills and clearly define roles to ensure effective collaboration and accountability.

The Capgemini report provides insight from a global executive survey conducted in May 2024, covering 15 countries and 11 industries. It reflects input from leaders, managers, and employees, and is reinforced by interviews with independent industry experts.